Ricketts Celebrates Taiwan Energy Security and Anti-Embargo Act Passing Out of Committee

WASHINGTON, D.C. - Today, U.S. Senator Pete Ricketts (R-NE) celebrated passage of the Taiwan Energy Security and Anti-Embargo Act in the Senate Committee on Foreign Relations. The bill was previously introduced by Sens. Ricketts and Chris Coons (D-DE). Ricketts is Chairman and Coons is Ranking Member of the Senate Foreign Relations Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy. This legislation aims to expand U.S. energy exports, particularly of liquified natural gas (LNG), to Taiwan. It encourages Taiwan's use of nuclear energy and supports Taiwan's energy infrastructure. It also ensures adequate flows of energy shipments to Taiwan in a contingency. Currently, Taiwan imports nearly all its energy. This makes Taiwan vulnerable to Communist China's illegal, coercive, aggressive, and deceptive actions.

"Energy security is a glaring vulnerability for our Taiwanese partners. Unleashing America's energy resources and expertise to strengthen Taiwan's resilience serves both the U.S. and Taiwan's national security interests," said Senator Ricketts. "Dictator Xi Jinping would like nothing more than to coerce unification without war. He has told his military to be ready to seize Taiwan by 2027. I encourage my colleagues to quickly pass this bill on the Senate floor. It will help in disrupting Communist China's aggression and ensuring they can't force Taiwan to capitulate."

The Taiwan Energy Security and Anti-Embargo Act would:

• Encourage the U.S. government to prioritize and facilitate increased American energy exports to Taiwan, particularly LNG, and consult with Taiwanese government on strengthening its import and storage capabilities.
• Advocate for U.S. engagement with Taiwan on cybersecurity, physical security, operational redundancy, joint training exercises, workforce development and emergency response planning to enhance energy infrastructure resilience capacity building.
• Authorize the establishment of a U.S.-Taiwan Energy Security Center to foster dialogue and collaboration for academic cooperation in energy security and resilience.
• Urge Taiwan to maintain nuclear power as an energy source and utilize new nuclear technologies like small modular reactors (SMRs), and for the U.S. to prioritize assistance and cooperation with Taiwan on nuclear energy.
• Expand MARAD's war risk insurance program to allow for coverage of foreign-flagged vessels transporting vital goods, such as energy resources, to Taiwan or other strategic partners when commercial insurance is unavailable due to heightened risks posed by military aggression.

BACKGROUND:

In May, U.S. Senator Pete Ricketts (R-NE), Chairman of the Senate Foreign Relations Subcommittee on East Asia, organized a tabletop exercise with Senator Chris Coons (D-DE) and other senators. The exercise was led by the Foundation for Defense of Democracies (FDD). The two-hour exercise tasked the participating senators with responding to a Communist Chinese-focused coercive campaign targeting Taiwan.

The exercise reflected the real risk that a Chinese energy quarantine presents to Taiwan. In addition to importing 98% of its energy with limited supplier diversification, Taiwan also lacks adequate storage facilities, limiting its capacity to stockpile imports in the event of a crisis. The U.S. is the world's leading exporter of LNG and possesses deep expertise in grid security, nuclear technology, and energy infrastructure. As a result, it can play an increased role in strengthening Taiwan's energy security and resilience.

Bill text as passed by the Senate Foreign Relations Committee can be found here. The bill was first covered by Bloomberg Government here.